A delegation of Israeli and Palestinian negotiators in Egypt have agreed to extend a five-day ceasefire in Gaza by 24 hours to give them more time to thrash out a long-term truce.

The announcement came moments before the current truce expired at 10pm (UK time).

Earlier, there had been conflicting reports as to what had been agreed between the two warring sides.

A senior Israeli official had told Sky News an agreement had not been reached with Hamas on a possible extension, while Palestinian media reported a new ceasefire deal had been drawn up in Cairo.

An official with the Palestinian delegation in the Egyptian capital said: "Both sides have agreed a 24-hour ceasefire."

Image:Palestinians leave their neighbourhood to take shelter in a UN school

The Egyptian government, which has been hosting indirect talks between Israel and Hamas, confirmed the extension in a statement.

"The negotiations have faced difficulties because of the occupation's obstinacy, and the 24-hour (extension) came as a result of a request by the mediators to have another chance," senior Hamas official Ezzat al-Rishq said on Twitter.

Sky's Middle East reporter Tom Rayner, in Jerusalem, said: "There have been lots of reports coming through the Arabic media in the last few hours suggesting a longer-term ceasefire deal had been arrived at that dealt with a few initial concerns and put some of the core issues - about the lifting of the blockade from the Palestinian side, or the demilitarisation of Gaza from the Israeli side - at the heart of this, on the table to be discussed.

"Israeli sources have told the Reuters news agency that it has agreed to a request from Egypt to continue and extend the current ceasefire for a further 24 hours to enable the indirect talks going on in Cairo to continue.

Image:fishing boats leave Gaza City's harbour as the truce nears its end

"Egyptian state television has read out a statement by the Egyptian foreign ministry confirming that.

"So what we have got here is not a ceasefire deal as such, but certainly an extension which will enable some of the issues that are still remaining to be ironed out.

"And, also perhaps, offer a window for Israeli cabinet approval which is certainly something we are expecting to be required if a broader deal is to be taken up - as was being suggested earlier."

The recent Gaza conflict has killed more than 1,900 Palestinians, the majority of them civilians, according to Palestinian and United Nations officials.

Israel said it lost 64 soldiers in combat. Three Israeli civilians have been killed.

Hussam Qawasmeh and Amar Abu Eisha's houses in the West Bank were blown up before dawn on Monday, while the home of a third suspect, Marwan Qawasmeh, was sealed off, the military said.

The deaths of the Israeli teens - Gilad Shaar, Naftali Frenkel and Eyal Yifrach - and the subsequent murder of 16-year-old Palestinian Mohammed Abu Khadair heightened tensions in the lead-up to the current conflict in Gaza.